Murex and Cetane Energy agreed to a major capacity expansion which will more than double the existing throughput of the Cetane crude oil transloading facility in Carlsbad, New Mexico.

According to company officials capital improvements, which will be completed in the third quarter of 2018, include a 100,000-barrel tank, additional Lease Automated Custody Transfer units for offloading trucks, expansion of the existing railcar loading rack, and road improvements.

Robert C. Wright, President of Murex, said, "Murex and Cetane have worked closely with the BNSF Railway and Southwest Railroad to increase capacity of the Cetane crude oil transloading facility to one unit-train per day. We believe this facility offers a unique, long-term and economical takeaway opportunity for Permian and Delaware Basin crude oil production. We look forward to further expanding the Carlsbad facility to meet the distribution needs of our suppliers,” he added.

The facility includes more than 18,000 feet of rail track to accommodate unit train loading at the facility. The expansion will allow the facility to load up to 110 cars in one day, or 75,000 barrels of oil per day.

Cetane also accommodates substantial transloading of sand, and segregated entry and exit lanes for crude oil will alleviate any congestion between commodities.